Probably one of the most arguable questions in a property market is whether to rent or buy an apartment. For some, renting a property provides the best benefits while others look for a permanent settlement and end up buying an apartment. Of course, the matter is subjective. But what are the underlying reasons that separate these two modes of living? There are quite a few unique characteristics but both renting and buying an apartment have pros and cons. And if you are about to make this decision, it is imperative to understand both of them so that you can align your requirements and make the right choice. To find out whether you should rent or buy an apartment in Dhaka, let’s go through the following.
Affordability and Savings
The primary question you should ask yourself is how much money do you have and whether it is enough to cover your expenses. Because the cost of living in Dhaka is increasing day by day and therefore most working class people would rather save and live in a rental apartment. For that, before you decide to rent or buy an apartment, check your finances and savings. The conventional way to invest in properties is through home loans. Banks and other financial institutions facilitate a wide range of home loan services. Usually, it takes a certain financial guarantee like bank savings, salary records or any other assets that differ from person to person and loan amount.
Stay Duration & Location
How long do you plan to stay in a particular location? Is it suitable enough for you and your family or is the need just temporary? For Instance, a large number of people in Dhaka prefer living near their office just to avoid traffic. For them, renting an apartment may be the best option. That way, they have limited liability and more mobility. Is the need the same for you? Or are you still looking for the best places to live in Dhaka? There are a number of popular residential locations among Dhaka denizens. Take a look in your preferred locations prior to investing in an apartment. Because location is one of the important factors that can impact property price.
Stability vs Flexibility
Are you planning to settle down or do you still prefer flexibility in your life? Flexibility does not only contain your duration of stay and mobility but also finances as well. If you are ready to cover monthly loan installments for a long period of time, then certainly you have financial stability and may go for purchasing a home. Buying an apartment requires maintaining this stability apart from incurring additional expenses. Plus, purchasing a home also requires a substantial upfront payment starting from legal document verification and registration cost to decorations and others. On the contrary, living in a rental apartment provides you the flexibility of moving out at the end of your rental agreement with no such costs whatsoever. Additionally, If you are not ready for long-term financial commitment then renting an apartment is a suitable option for you.
Obviously, ownership comes with a multitude of responsibilities. Home maintenance is a big concern for the owners. Moreover, if you purchase a home, you will have to bear holding taxes every year. Apart from these, any other responsibilities regarding the property is on your shoulders. Hence, a lot of people spend a great deal scrutinizing legal documents before buying a property. In the long run, if you purchase a property which doesn’t comply with RAJUK or other housing authority requirements, the accusation will be on you.
Renting an apartment in Dhaka gives you exemption from all these fees and charges as you will have to bear only monthly rental payments. Less stake in the property means less responsibility!
What Are Your Goals?
Think long-term before you decide to rent or buy an apartment. Even if you have the financial capability of purchasing a home right now, does it affect your plans? Take your children’s education for example. If you decide to purchase an apartment in Dhaka, they will most likely go to a nearby educational institution and spend a large portion of their life in that institution. Not only that, think of the area’s development prospects as well. Are they aligned with your long-term needs? If you can strike a balance and find a perfect match, then most certainly you should purchase an apartment. It will ensure long-term safety and comfort. But if you are yet to figure out the long-term plans, then going for rent would protect your savings and buy you more time to plan.
Share your experiences and preferences with us in the comments section below whether to rent or buy an apartment in Dhaka city. Also, if you are already looking for property, we could help you as well. Drop your requirements or reach out to our customer executives and we will get back to you in no time.